Repeat Borrower with excellent fix and flip history needed a loan to fund the purchase and construction costs for a diamond in the rough in Santa Ana.
- Mortgage Vintage Loan at 70% LTV of Purchase Price
- Funded loan in less than a week
- 9.5% Lender Rate
- 12 Months Loan Term
- MVI Fix and Flip Investor sold the finished property for $490,000 over original purchase
This original Single Family Residence property in Santa Ana needed extensive work and provided an opportunity to add an ADU and a Jr. ADU to make this an income generating property for the next owners. A previous proven and successful Fix & Flipper borrower came to us with this opportunity, and with a complete renovation the property was sold for more than double the purchase price.
This small home was built over 70 years ago and followed the standards of 1940’s home building of a larger lot with a small home and detached garage. Through neglect by the previous owner, the entire property had fallen into disrepair. The lot itself had large trees that used valuable square footage, the concrete driveway was in pieces and the interior had not been touched. A wholesale renovation of the main building and garage was needed and space created for a full ADU and Jr ADU.
The 7,700 sf property was cleared, and new landscaping installed. The house itself was seemingly rebuilt from the ground up. Using the existing but solidified foundation, exterior walls and plumbing as a guide – interior walls, flooring, electrical, roofing and the kitchen and bathrooms were replaced. The property was expanded from 797 sf of living space to 3,000 sf. The goal was achieved to create a functional and beautiful living space and to sell the property at a profit.
The funds provided by private investors from CrowdTrustDeed were used wisely for the purchase and renovations. The original property purchased by the contractor was completely transformed and ready to be listed 7 months later. The Flipper listed and sold the property quickly and earned a substantial return on their investment. Mortgage Vintage and CrowdTrustDeed are proud to have facilitated the remodel and new construction of additional needed housing stock in the wonderful City of Santa Ana.
Transformative Fix and Flip with ADU in Santa Ana Success Story
- $269,500 1st Trust Deed
- 70.00% LTV on BPO Value
- 9.75% Annualized Return
- 12-month – Fix and Flip Loan
- MVI funds loan in 5 business days
The Subject:
- Address: 1925 S. Orange Ave, Santa Ana, CA
- Type: Single Family Residence
- Layout: 2 BR/1 BA
- Condition: Neglected and Dated
The Scenario:
- Large Lot not utilized for maximum value
- 2BR/1BA in 797sq ft on a 7,770 sq ft lot
- This property is in a gentrified area
The Solution:
- MVI provided an 70.00% LTV 1st TD for a contractor who is a repeat borrower
- Contractor to upgrade property to 4 BR, 3 BA home with an ADU with 1 BR/1BA JADU in 3,000 total sq ft
- Fast close was provided in 5 business days so demolition and construction could begin
- With MVI funds secured, the borrower went to work and transformed the property
- Fast Funding Based on Committed Terms with Funds Control in place
The Numbers:
- As is Appraised Value: $385,000
- Sold 7 months later for $875,000
